MoD poised to award £2bn Apache deal to Boeing in new blow to UK defence industry

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The Ministry of Defence is poised to hand another major deal to a US company, with a £2bn contract for new Apache helicopters set to be awarded to Boeing.

Leonardo, the Italian aerospace manufacturer until recently known as Finmeccanica, had been battling to land the deal, which would have seen the refitted helicopters produced at its base in Yeovil, Somerset, where 3,700 staff are employed. Such an agreement would have provided a significant long-term boost to UK jobs and skills.

However, it is understood the MoD has decided to hand the 50-aircraft contract, worth £2bn over its lifetime when servicing is included, to Boeing.

An announcement could come as soon as early July at the Royal International...